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PAGE Mongolia – Sustaining Green Development Policy-Making and Action

Doc 3.1 PAGE MongoliaSustaining Green Development Policy-Making and Action

3rd draft for consultation – February 2018

The present paper looks at how the development and implementation of inclusive green economy policies in Mongolia which have been supported by PAGE, can be sustained beyond the project which is ending in early 2018. The annexed table provides an assessment of the PAGE project in Mongolia against the sustainability criteria set out in the PAGE Operational Strategy 2016-2020, as well as an action plan setting out the main steps necessary to ensure sustainability for each outcome area.

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Table of Contents

1 Background – PAGE Mongolia 2013-2017.....................................................................................3

2 Outcome Area 1 – Sustaining the Implementation of the National Green Development Policy.....3

3 Outcome Area 2 – Green Economy Policies at Sector Level beyond 2017....................................5

4 Outcome Area 3 – National Capacities to Sustain Policy Analysis and Implementation.................7

Annex 1: Sustainability Criteria.............................................................................................................10

Annex 2: Sustainability Plan................................................................................................................. 12

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1 Background – PAGE Mongolia 2013-2017Over the past 25 years, Mongolia has transformed into a vibrant democracy, with treble the level of GDP per capita and increasing school enrolments, and dramatic declines in maternal mortality and child mortality. With vast agricultural and mineral resources and an increasingly educated population, Mongolia’s long-term development prospects are bright. At the same time Mongolia continues to face important environmental challenges, such as land degradation, air and water pollution and increasing carbon dioxide emissions. The economy continues to wrestle with persistent economic imbalances, suffering from a continued weakening of the commodity market and slower growth in the key export market of China.1

PAGE started its engagement in Mongolia in 2013, supporting the development of the National Green Development Policy (NGDP) which was approved by Parliament in 2014. Since then the country has experienced significant change. The country saw a high point in economic production with a GDP of 12.58 billion USD in 2013, contracting to 11.16 billion USD in 2016.2 According to an estimation by the National Statistics Office (NSO) of Mongolia and the World Bank, the poverty rate in Mongolia reached 29.6 percent in 2016 – an increase by 8.0 percentage points from the poverty rate of 21.6 percent in 20143. Several changes in the Government took place over the past four years (including dismissal of the Prime Minister by Parliament in November 2014; formation of a new coalition Government in January 2015; removal of the Mongolian People's Party (MPP) from the coalition government in August 2015 and dismissal of six Ministers; landslide victory of the MPP in the parliamentary elections in June 2016; and ousting of the MPP cabinet in September 2017 and formation of a new Cabinet in October 2017).

Despite this challenging context the country’s commitment to alternative economic growth based on environmental sustainability and social inclusiveness remains firm.

In January 2016, the Cabinet approved an Action Plan for implementation of the National Green Development Policy and one month later the State Great Khural, the Mongolian Parliament, adopted the Sustainable Development Vision (SDV) 2030. Under its Nationally Determined Contribution, Mongolia is committed to reduce national greenhouse gas emissions by 14% by 2030, compared to the projected emissions under a business as usual scenario.

PAGE has supported Mongolia in advancing its green development agenda with evidence-based policy appraisal using system dynamics modelling, analysis of different options for implementation of the NGDP, and support for policy development and reform in specific sectors and thematic areas, such as green construction, sustainable public procurement, green economy learning, sustainable finance, waste management and trade.

Under PAGE, the Mongolian Government has worked with the five partner agencies towards the following outcomes:

Outcome 1 – Mongolia has reinforced and integrated inclusive green economy goals and targets into SDG-aligned national economic and development planning through multi-stakeholder collaboration,

Outcome 2 – Mongolia has implemented evidence-based sectoral and thematic reforms in line with national green economy priorities,

Outcome 3 – Mongolia has strengthened individual, institutional and planning capacities for inclusive green economy action.

The following sections discuss how the green economy policy and capacity development processes, which have been supported by PAGE, can be sustained beyond the project which is ending in early 2018.

1 http://www.worldbank.org/en/country/mongolia/overview2 http://data.worldbank.org/country/mongolia3 http://www.worldbank.org/en/news/press-release/2017/10/17/2016-poverty-rate-in-mongolia-estimated-at-296-percent

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2 Outcome Area 1 – Sustaining the Implementation of the National Green Development Policy

With the NGDP Mongolia has a national framework in place that sets clear goals for a green development pathway of the country, centered on promotion of sustainable consumption and production, sustainable ecosystem carrying capacity, increased investment in natural capital, human development, green technology, and green lifestyle and education. The table below outlines specific targets included in the Policy for 2020 and 2030 respectively:

Table 1: NGDP targets for 2020 and 2030

Indicators 2020 2030

1. Share of renewable energy in total installed capacity of energy production 20% 30%

2. Share of reduction of building heat loss 20% 40%

3. Waste recycling share 20% 40%

4. Share of expenditure in green development in total GDP 2% 3%

5. Share of expenditures for science and technology research in total GDP 2% 3%

6. Share of green procurement in total government procurement 20% 30%

7. Share of protected areas 25% 30%

8. Increased investment in environmental protection and restoration 20% 30%

9. Share of forest area in total territory 8.5% 9%

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Percentage of population with access to qualified drinking water 80% 90%

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Percentage of population with access to improved sanitation facilities 40% 60%

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Poverty level 24% 15%

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Percentage of green facilities in Ulaanbaatar city and other urban areas 15% 30%

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Share of agriculture and manufacturing in total GDP 28% 30%

The Action Plan complements the Policy, by setting out specific projects and policies that are needed to achieve the ambitious objectives of the NGDP. The Plan features 255 activities with a budget estimation of approximately USD 8.0 billion until 2030.The directions given by the NGDP are underpinned by the results of a T21 modelling and policy assessment carried out by the Economic Policy and Competitiveness Research Center (EPCRC) in collaboration with the Ministry of Environment and Tourism (MET) and with support by PAGE. The model tested the possibility of achieving the NGDP targets under different scenarios: one business as usual (BAU) case, in which no green economy investments take place, and five green economy investment scenarios for comparison: 2.0%, 2.5%, 3.0%, 3.5% and 4.0% of GDP. In addition to the modeling results, the assessment provides a number of specific policy recommendations for four selected sectors (construction, solid waste, energy and water).

PAGE also helped to define indicators for measuring progress towards the NGDP in collaboration with the National Statistical Office. In 2015, an initial set of indicators was further reviewed with technical support from the Global Green Growth Institute (GGGI). In 2017, the Government decided to provide national budgetary resources for operationalizing the 38 green development indicators that were approved by a NSO resolution in July 2017. This measure has enabled NSO to develop an estimation methodology and monitor and inform the progress in implementing the NGDP on a continuous basis, including information on green jobs through the regular Labour Force Survey.

Over the past four years Mongolia has set clear policy directions and targets for green development that could guide policy and investment decisions for the years to come. Going

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forward, there are a number of complementary and additional areas of work that would be highly beneficial in furthering implementation of the government’s green development policy:

Support policy alignment and integration: Overall there is consistency between the Green Development Policy and the Sustainable Development Vision, as demonstrated by a UNDP study conducted in 2016.4 Both documents provide an alternative vision to the current resource-intensive growth model which has created serious environmental problems and has increased the divide between the urban centers of Ulaanbaatar and the countryside. The challenge is to ensure that green/sustainable development priorities are consistently reflected in medium-term planning processes and annual budget decisions. MET which is responsible for coordinating the NGDP has successfully worked with other Ministries on specific projects and themes to advance implementation of the policy, including green buildings with Ministry of Construction and Urban Development (MCUD) and sustainable public procurement with Ministry of Finance (see also below). The NGDP and SDV goals are also reflected in other sectoral policies including the National Action Plan for Energy Efficiency and the National Action Plan on Air and Environmental Pollution Abatement. SDV and the NGDP principles are also mainstreamed in sub-national development policies. Four aimags have adopted medium term development programmes based on the SDV and NGDP and five aimags are working on final drafts. The National Development Agency (NDA), which is coordinating the implementation of the SDV, is currently working on a medium-term development plan that is aligned with the SDV and is interested in using green economy analytical tools. Given the close alignment of the NGDP and the SDV there would be value in streamlining relevant support projects. For example, the second phase of a UNDP project on SDV implementation could facilitate linkages with the NGDP process, building on the green development modelling results and policy recommendations, and helping to further integrate the NGDP and SDV monitoring frameworks.

Sustain provision and take-up of evidence-based policy analysis: The modelling exercise in Mongolia has provided valuable data to inform policy and investment decisions, and technical capacity has been built in the Ministry of Finance, the National University of Mongolia and within EPCRC. While this is encouraging, the number of government staff able to interpret and use modelling data needs to be further increased. In the short-term, it will be important to further coordinate efforts with other projects supporting modelling and policy analysis work such as the UNDESA-UNDP capacity building project on the use of economy-wide modelling for implementing the SDV. In the medium-term, the work PAGE has initiated with national universities has been designed to significantly increase in the number of professionals with green economy modelling and policy analysis skills (see below). Furthermore, PAGE will continue to explore opportunities to partner with other institutions that have expressed interest in establishing a new policy research institute. For example, the World Bank’s Second Multi-Sector Technical Assistance Project (MSTAP 2) that is starting in 2017 includes a component on “Strengthening Macroeconomic and Fiscal Management”, including technical assistance “to enhance macroeconomic forecasting capacity and fiscal policy research by developing and adopting a macroeconomic projection tool and establishing an independent economic and fiscal policy research unit”.5

Continue cross-Government collaboration: Through the PAGE Technical Committee and inter-ministerial collaboration on different workstreams, PAGE has been able to help to facilitate a spirit of collaboration for green development across both government and non-government institutions, including also other green initiatives such as GGGI, ESD and PEI . For this type of collaboration to be sustained beyond the project period several options exist:

o The Ministry of Environment decides to transform the PAGE project committee into a permanent coordination mechanism. This mechanism could potentially also involve representatives from the private sector, academia, industry associations and civil society.

o The Ministry of Environment facilitates coordination through another project-related mechanism.

4 The strategic objectives of the NGDP are directly linked to the SDGs and the objectives in the SDV; apart from objective 3 on “promoting investment in environmental protection, human development and clean technology and leverage tax, credit and incentive mechanisms to finance green economy”. This objective will require more targeted policies and programmes in the medium-term.

5http://documents.worldbank.org/curated/en/528701486556768734/pdf/ITM00184-P161048-02-08-2017-1486556766417.pdf 5

http://documents.worldbank.org/curated/en/528701486556768734/pdf/ITM00184-P161048-02-08-2017-1486556766417.pdf


o NGDP implementation can be linked to an existing, functional cross-Government mechanism such as the Standing Sub-Committee for Sustainable Development in the Parliament or the National Council for Sustainable Development under the Prime Minister’s Office.

PAGE has developed a short paper presenting experiences of other countries with different types of cross-Government mechanisms for green and sustainable development, which can inform further reflections on the matter.

Ensuring high-level visibility of green economy issues: Over the past years PAGE has contributed to raising awareness and strengthen commitment and ownership among policy-makers and other key stakeholders through several high-level events on green development. The events were jointly organized with MET, Ministry of Finance, the Economic Standing Committee of the State Great Khural of Mongolia (Parliament), the Standing Committee on Environment, Food and Agriculture, and the Prime Minister’s Office (2013, 2015 and 2016). It will be crucial to ensure organization of similar high-level gatherings in the future, in particular in view of frequent Government changes.

3 Outcome Area 2 – Green Economy Policies at Sector Level beyond 2017

PAGE has supported policy reforms in a number of thematic areas. In many areas project activities have led to actual policy changes, an important parameter for long-term impact. Through the NGDP Action Plan the different thematic workstreams initiated by PAGE have been consolidated in a government-owned document. In particular, the Plan includes a series of actions on sustainable public procurement, sustainable financing, green building, waste management, trade and green economy learning. The summary below gives an overview of the PAGE workstreams and how they can be sustained beyond the project’s involvement.

Financing green development Sustainable public procurement (SPP): Changes in Government procurement practices can be an

important driver for sustainable production and consumption in the country. In 2014, Mongolian Government spending represented 32% of GDP, and public procurement of products and services accounted for about 12% of GDP. In support of the NGDP goal to ensure that by 2020 at least 20% of public procurement would be green, PAGE has supported the Ministry of Finance to incorporate sustainability principles into the national public procurement framework. A status analysis of public procurement, prioritization of goods for sustainable procurement, and a market analysis were conducted and three products (A4 copy paper, printer ink cartridges and lightweight concrete blocks) were selected as priority products to be procured through sustainability criteria. Sustainable public procurement tools and sample tendering materials are under development. PAGE has supported an Amendment to the Law on Public Procurement. The Amendment is expected to be submitted to the Parliament during the 2018 spring session with the potential to have a long-term impact on the sustainability of public procurement in Mongolia. In parallel, an Action Plan for sustainable public procurement will be submitted to Government. However, it remains challenging to integrate sustainability criteria into Government procurement processes, in particular into bidding documents due to the diversity of goods and services that the Government buys, lack of expertise within the procurement agency and within ministries as well as low capacity of SMEs to apply sustainability standards. To implement the amended Law of Mongolia on Public Procurement and the Action Plan, the Government therefore plans to develop sustainability criteria for more goods and services, develop tools to monitor SPP, train public procurers, raise suppliers’ awareness and understanding of environmentally-friendly products and services, and enhance opportunities for national SMEs to participate in the tendering and supply of products and services to the Government. The work supported by PAGE can be potentially picked-up by the SWITCH-Asia SCP Facility and a regional ILO project, both focusing on eco-labelling.

Sustainable finance: PAGE is supporting the Mongolian banking sector in the development of green and inclusive financial products and services in partnership with the UN Environment Finance Initiative. PAGE has supported a study on demand for green credits and contributed to the establishment of a joint working group for creating a Mongolian Green Credit Fund. The aim of the Fund is to serve as a vehicle to bring long-term financing to projects and companies that stimulate green growth in the country. A multi-partner agreement in support of the Fund was signed at the 5th Mongolian Sustainable Finance Forum in September 2017. In October 2017, the Government established a Green Development Fund under the National Development Bank with the aim to apply sustainability to development financing (ODA-funded investment projects) and

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large-scale public investment projects. In terms of national budgetary resources, the Government of Mongolia is making efforts to ensure green public financing through sustainable public procurement (see above), as well as taxation and subsidies including a special night tariff in ger areas of Ulaanbaatar. To accelerate the transformation to a green economy, state revenue generation and spending would need to be reformed by setting appropriate economic incentives and taxation policies in key sectors. An opportunity to continue work in this area might be a new UN Environment led project on “Supporting Implementation of the NDCs through Fiscal Policy Measures”. To expand the current work on sustainable finance which is focusing on providing finance for explicitly green investments UN Environment, through ‘The Inquiry’, is supporting a review of the broader financial system in Mongolia. A roadmap for sustainable finance will be developed to better align Mongolia’s financial system with the Sustainable Development Vision.

Greening sectoral policies Green buildings: The NGDP proposes energy efficiency standards and a rating system for green

buildings to reduce heat loss through buildings by 20 percent by 2020 and by 40 percent in 2030. PAGE supported the Government to develop a handbook on green school building and the design for a green school building that would showcase how to achieve these efficiency standards. In 2016, the design was completed, approved and certified and is now ready to be applied to over 220 schools that need to be built over the next 3-4 years nationally (of which 85 need to be built in Ulaanbaatar). A first prototype school will be built under the leadership of MET and the Ministry of Education Science, Culture and Sports (MESCS), using a loan by the Asian Development Bank (ADB). The green school building has also inspired policy action for green buildings beyond public schools. The school design will feed into the development of the State policy in the construction and building sector, green building codes and rating system under the leadership of the MCUD. Moreover, PAGE is supporting the formulation of a ‘business case’ for green buildings and is providing capacity development for stakeholders in the construction sector which should further foster up-take of green design elements for public and private buildings. PAGE has also contributed to the establishment of a multi-stakeholder Green Buildings Advisory Council. The work supported by PAGE can be potentially picked-up by the SWITCH-Asia SCP Facility, with a broader view on resource-efficient cities and housing.

Waste management: PAGE carried out a study on industrial waste management and the recycling industry in Mongolia. The report analyzed existing waste management policies e.g. including regulatory, mandatory and voluntary instruments along with the industrial waste management chain. Based on the industrial waste analysis, PAGE is collaborating with MET and Ministry of Road and Transportation Development (MRTD) on carrying out a baseline study on waste from end of life vehicles. The study provides specific policy recommendations that could be incorporated into national strategies and an action plan for waste management of end of life vehicles. The plan will look into the feasibility for local SMEs to process and recycle waste, and provide financing solutions. PAGE initiatives on waste management has been advanced through approval of the renewed Law of Mongolia on Waste Management in May 2017. The Law aims to prevent and reduce the negative impacts of waste on human health, to turn waste into economically valuable resources, save natural resources and improve citizen’s awareness and knowledge on waste management. Key aspects reflected in the law include activities and actions required to manage waste from its inception to final stage-collection, sorting out, transportation, storage, treatment, disposal, recycling and exporting and importing of waste. Furthermore, Mongolia has been benefiting from several UN-led projects on waste management. These include: “Strengthening and enhancing the application of environmentally sound technologies related to holistic waste management in addressing climate change challenges in Mongolia” (UN Environment); “Reducing negative impacts on human health and environment by promoting appropriate management of Mongolian chemicals“ (UNIDO); and “Minamata initial assessment“ (UNIDO). UNIDO is preparing a project proposal for submission to the Global Environment Facility (GEF) that could support the implementation of the ‘waste from end of life vehicles’ policy recommendations.

Green trade: This workstream aims to build Mongolia’s global competitiveness by identifying and harnessing green trade opportunities. In particular, it supports the country in developing export-oriented processing industries and exporting “Mongol Brand” products that meet sustainability standards to the international market; becoming a clean energy exporting country; and developing infrastructure and supply chain and logistics networks. A stocktaking study on green trade is currently being carried out to analyze green trade opportunities as well as barriers in key sectors, identify knowledge and capacity gaps, and point to international and regional trade

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governance issues. The results of the study are intended to inform the development of a green trade policy under the leadership of NDA, MOFA and MET. The policy recommendations will also contribute to the implementation of the Government’s Action Plan 2016-2020, and be integrated into Mongolia’s export programme, 21x100 industrialization programme and medium-term policy of Mongolia. To increase the competitiveness of national enterprises and harness global green trade market opportunities it would be essential to develop a national eco-labelling scheme and sustainability standards that match international standards and assist Mongolian SMEs in communicating with and participating in global sustainable value chains. UN Environment is working with the International Trade Center (ITC) and national partners on a project proposal to link SMEs with global sustainable value chains, and is exploring opportunities for Mongolia to participate in an up-coming South-South cooperation project on green trade.

Beyond these workstreams, PAGE partners are continuing their engagement in Mongolia on an individual basis, thereby strengthening and extending work done through the partnership. For example, UN Environment is working on two new project proposals on district heating systems and rural economic diversification for submission to the Green Climate Fund.

4 Outcome Area 3 – National Capacities to Sustain Policy Analysis and Implementation

Over the past years, PAGE has contributed to building up a cadre of public sector officials that have a solid understanding of green development concepts and approaches. In total, over 480 professionals at national and sub-national level were trained between 2013 and 2016 in Mongolia. In addition, participation in international study visits and workshops such as the Global Green Economy Academy, the PAGE Ministerial Conference in Berlin and study visits to Sweden and the USA, as well as online trainings on Sustainable Consumption and Production, Green Economy and Trade and Green Fiscal Reform have contributed to a better understanding of inclusive green economy, ownership of and enthusiasm by Government officials. The skills development programmes were underpinned by a systematic review of national learning needs and priorities and the development of a National Green Economy Learning Strategy. The Strategy has been transformed into a MET sub-programme for implementation under the NGDP Action Plan and will inform the Government’s Action Plan for Education for Sustainable Development and the new Higher Education Policy. PAGE has also contributed to public awareness of green development through media training and communication campaigns and shared its knowledge and experience through lectures, press talks and interviews on specific aspects of green economy, including gender, sustainable public procurement, green buildings, trade, sustainable consumption and lifestyle.

PAGE has taken an institutional approach to capacity development, working with universities, Government institutions, public policy institutes and private companies.

Education and training institutions PAGE has been working with Mongolian universities on integrating green economy concepts and approaches into tertiary programmes and curricula. By the end of the PAGE project, two new university courses on green economy and modelling as well as sustainable finance will be completed for a pilot run in the 2018-2019 academic year, involving the Mongolian State University of Life Science, the National University of Mongolia, and the University of Economics and Business. Furthermore, a certified training on green buildings by the Construction Development Center jointly with the Mongolian University of Science and Technology, will be established by the end of the project. These programmes hold the potential to reach several hundred graduates and undergraduates per year. In addition to the tertiary education programmes, it is imperative to invest in recurrent training programmes across Government to develop a cadre of public officials that are able to develop and analyze policy options to promote an inclusive green economy. An example of this is a training on sustainable public procurement which the Ministry of Finance is planning to establish working with certified procurement training institutions. In addition, it would be important to establish a cross-governmental foundational training programme building on the existing learning materials developed under PAGE. To be sustainable such a programme would need to be built in partnership with national

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institutions regularly delivering trainings for civil servants, such as the National University of Mongolia or the National Academy of Management.

Government institutionsPAGE has built institutional capacities of Government partners to carry forward the policy work that has been initiated under the project:

Ministry of Environment and Tourism: With support of PAGE, the Ministry has developed its capacity in the areas of green economy modelling, policy design and coordination.

Ministry of Finance: Through the sustainable public procurement workstream, the Ministry of Finance has developed solid capacities (including qualified staff, procedures and tools) to better integrate environmental and social considerations into their procurement procedures. This was a completely new area of work for the Ministry whose procurement procedures so far were based exclusively on financial criteria. The Ministry of Finance has also strengthened its capacity to develop and use T21 macroeconomic modelling for policy analysis and provided training to university lecturers and researchers.

Ministry of Construction and Urban Development: Together with other development partners such as UNDP, IFC, Caritas and GGGI, MCUD has developed technical capacities in the area of green city planning and energy efficient and green buildings. The Ministry has now in place institutional and human capacities for integrating green building criteria into a national programme for the building and construction sector, renewing the national coding system, norms and standards, and introducing a green building rating system.

National Statistical Office: NSO has been a key implementing partner under the PAGE project. With support by PAGE and GGGI, NSO has been able to put in place a coherent monitoring framework for the NGDP and has built the capacity of its staff in terms of green development data collection, indicators’ estimation and analysis.

National Development Agency: NDA was created in 2016 when PAGE was in its third year of implementation. Over the past months, PAGE has started engaging with the agency, in particular through the green trade work. PAGE’s forecasting and modelling work, as well as the analytical reports on policy coherence and mainstreaming gender equality into national policy and local development initiatives could support implementation of NDA’s mandates on policy and planning. The stocktaking report from green trade work can also be integrated into regional and sectoral policy coordination bringing sustainability concepts into development policy and planning.

Aimag Governments: PAGE has been working with aimags to strengthen capacities of aimag policy makers in elaboration of aimag policy documents and has provided training on green economy and sustainable development to nearly 200 policy makers from Aimag Governor’s office and other institutions.

Research institutes and private companies Economic Policy and Competitiveness Research Center: Before the engagement with PAGE,

EPCRC had economic research capacities, but without specific expertise in green development matters. With PAGE support, EPCRC has produced several reports in the area of green development, including a stocktaking report on Mongolia’s transition to a green economy, a green jobs mapping and a green economy policy assessment report. The Center has developed the ability to run macro-economic models and use T21 model for assessing the impact of green investments on key parameters such as jobs, GDP growth, emissions, etc. EPCRC is now a member of the Green Economy Coalition, a global network committed to green and fair economies. The EPCRC will host the GEC's Mongolian national dialogue and policy hub, helping to stimulate green economy discussion and progress across the country and create a green economy database.

NAP LLC. NAP LLC is the national architecture and design company that has worked on the green school building design. The company is now working towards becoming the 1st Mongolian green building architecture company.

Mongolian Marketing Consulting Group (MMCG). MMCG has carried out the demand for green credits and worked on drafting the Green Economy Learning Strategy. MMCG has established the Green Business Council to promote sustainable production and environmental management among SMEs in Mongolia.

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Annex 1: Sustainability CriteriaSustainability criteria

What’s likely to be achieved Remaining challenges and risks

The national development strategy has been reframed in line with overall inclusive green economy and SDG priorities

National Green Development Policy and Action Plan approved and highly visible.

Priorities in Green Development Policy mapped against Sustainable Development Vision.

Modelling results available and disseminated to key stakeholders.

Green development indicators (38) work informing monitoring framework for NGDP. Green jobs module integral part of quarterly labour force survey.

Capacities build at sub-national level for more integrated and result-based planning, based on SDV and NGDP

Ensuring coherence between institutional set-up for implementing the National Green Development Policy and the Sustainable Development Vision.

Fully translating actions and priorities included in National Green Development Policy into planning and budgeting processes and investment decisions. Same for modelling results.

Frequent political change, economic slow-down and public deficit may constrict the available space for green and inclusive policy-making.

To cope with debt settlement the Mongolian Government may decide to implement environmentally risky and fast revenue generation programmes that are based on unsustainable use of natural resources.

Immediate negative effects of economic downturn are social inclusiveness and increased poverty rate. As a result the Government needs to pay closer attention to social inclusiveness through targeted employment and social welfare planning, fiscal policy and investment programmes.

An effective national coordination mechanism for inclusive green economy is in place

PAGE has fostered spirit of cross-Government collaboration for green development.

Functions of PAGE Technical Committee could be picked up by other project committee or existing Government mechanism.

Technical Committee will be dissolved with end of PAGE project.

National Council for Sustainable Development is not functional yet and its mandate does not cover NGDP.

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Sustainability criteria What’s likely to be achieved Remaining challenges and risks

Capacities to implement green economy policies across sectors have been developed and analytical capacities have been strengthened

Changes in procurement law approved. Key stakeholders trained.

Green school building design completed informing green building code and rating system.

Policy recommendations and action plan for waste management of end of life vehicles in place. Key stakeholders trained.

Opportunities for developing green trade policy identified and key stakeholders trained.

Translation of recommendations under trade and waste workstreams into actual policy development, changes and renewal.

Other key sectors are not yet undergoing any significant reforms.

Additional funding opportunities have been identified and supported by national and international actors, and in particular by domestic financial markets, finance institutions, and international capital markets

Green Credit Fund launched.

Several proposals for international funding (GCF and others) under way.

Shift of state budget to green/sustainable public procurement and green investment.

UNEP Inquiry picking up work on aligning overall financial system/regulations with sustainability.

Mobilization of state budgetary resources for implementing National Green Development Policy.

Directing mainstream private sector finance towards green investments.

Core green economy elements are integrated into training programmes delivered by national institutions

Courses on green modelling and sustainable finance developed and ready for roll-out at national universities in 2018.

Training package on green buildings available and delivered by Construction Development Center.

Mainstreaming green economy approaches in existing university courses.

Recurrent training programmes at scale for current staff of Government agencies

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Annex 2: Sustainability Plan

Outcome Area 1 – Sustaining the Implementation of the National Green Development PolicyTheme / Sector Intended status by end of

PAGE project (Q1 2018)

Actions Government lead(s)

Partners Further thoughts and additional actions needed to achieve

sustainability

Policy alignment and integration

National indicators for monitoring progress towards implementing SDV and NGDP are streamlined.

Medium-term development plan is completed using green economy analysis.

SDV and NGDP priorities are reflected in budget circular for 2019.

Aimag medium term development vision up to 2025 based on SDV and NGDP and approved by Aimag Citizen’s Assembly. Green economy pilot projects in two aimags implemented.

…. MET

NDA

MOF

NSO

Orkhon and Dornogovi aimag Governor’s Office

UNDP

UNITAR

Integrate sustainability into investment policy

Integrate sustainability into fiscal policy

Integrate sustainability into regional development policy

Setting right taxation and incentive system

Local government budget reflecting green development targets and actions.

Provision and take-up of evidence for policy-making

A collaboration with another support programme working on macro-economic modeling (such as World Bank or UNDESA-UNDP) is in place to include green economy policy analysis tools.

… MOF

NDA

NSO

MET

UN Environment

UNDP

Build capacities of central and local Government authorities to analyse and use statistical data for evidence-based policy making and monitoring.

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Cross-Government collaboration

Effective national coordination mechanism for Mongolia’s long-term development policies (NGDP and SDV) set-up, including active National Council for Sustainable Development and Parliamentarian Standing Subcommittee on Sustainable Development as strong legislative actor.

… Cabinet

NDA

MET

Parliament

UNDP

UNITAR

Outcome Area 2 –Evidence-based sectoral and thematic reforms in line with national green economy priorities

Theme / Sector Intended status by end of PAGE project

(Q1 2018)

Actions Government lead


sustainability

Sustainable public procurement

Law on Public Procurement amended to include sustainability principles.

Action Plan on SPP adopted by Cabinet.

Study visit for Government and Parliamentarians.

Finalization of SPP Action Plan and presentation to Cabinet.

Finalization of bidding document and SPP guidelines.

Training for public procurers on SPP.

Exploring opportunities to include Mongolia in Switch Asia SPP projects.

MOF

MET

UN Environment

Integrate sustainability into investment policies as well as sectoral budgeting and planning.

Develop and introduce sustainability standards and criteria for broader type of products to integrate into tender documents.

Sustainable finance Mongolian Green Credit Fund (MGCF) launched.

Submission of proposal to global Green Climate Fund

MOF UN Environment

Secure financing for MGCF.

Support for GoM to establish Green

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Roadmap for sustainable finance for Mongolian financial system developed and endorsed by Government and banking/private sector.

to provide finance for MGCF. Development of Sustainable

Finance Roadmap with support of UN Inquiry.

Exploring opportunities for including Mongolia in new GEF-funded programme to implement Sustainable Finance Roadmap.

MET

Central Bank

MBA

IFC

Development Fund and integrate sustainability into development financing/programmes.

Investigate new funding sources for implementation of key activities identified in SF roadmap

Green buildings ADB loan for construction of first green school confirmed.

State Policy for the Construction and Building Sector includes green principles and standards.

Recurrent training programme on green buildings for engineers established.

Inclusion of green school design in ADB loan request.

Technical advice for including green design principles in state policy for construction and building sector.

Development of business case for green buildings.

Development of green building training modules tailored to Mongolian context.

Exploring opportunities for continuing support for green buildings policy and capacity development work under ILO and UN Environment led projects.

MCUD

MET

UN Environment

ILO

Green building code and rating system will be supported by NAMA/UNDP and IFC.

Establish National Alliance for Buildings and Construction with the support of UN Environment.

Waste management Recommendations from stocktaking study on waste from end of life vehicles completed and considered by policy-makers

Complete study with comments from MET and MRTD and present findings to key stakeholders.

Exploring opportunities for submitting GEF project

MET

MRTD

UNIDO Translate recommendation into policy action

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proposal to support implementation of policy recommendations.

Green trade Stocktaking study on green trade opportunities and cases on selected products (meat, sea buckthorn) completed and recommendations considered by MoFA, NDA and MET.

Complete study and present findings to key stakeholders.

Develop a project with UN Environment and ITC to link SMEs with global sustainable value chain and strengthen their capacities.

Exploring opportunity for Mongolia to participate in up-coming South-South cooperation project on Green Trade and Global Value Chains

MET

NDA

MOFA

UN Environment

.

Outcome Area 3–Strengthened individual, institutional and planning capacities for inclusive green economy action

Theme / Sector Intended status by end of PAGE project

(Q1 2018)

Actions Government lead


sustainability

Tertiary education programmes

New university courses on green economy and modelling and sustainable finance completed and scheduled to be delivered during 2018-2019 academic year.

Issue agreement between UNITAR and MET for development of new course on sustainable finance.

Engage relevant stakeholders in course development including IFC and MBA

Provide technical advice for development of both courses.

MET

MESCS

UNITAR

UNEP

ILO

NUM

NUCB

Mainstream green economy and sustainable development issues into existing courses.

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Higher education policy includes learning for green and sustainable development as a priority

Organize ToT for university lecturers.

Help universities establish collaboration with international networks such as ProSPER.Net and foreign universities.

MULS

University of Finance and Economics

IFC

MBA

Continuous training and capacity development for Government officials

A core group of Government staff across Ministries has been trained on green economy concepts and tools.

Continue supporting participation of government officials in PAGE global capacity building and knowledge-sharing activities

Continue South-South collaboration with other PAGE countries

MET UNITAR

PAGE Secretariat

Establish a recurrent cross-governmental foundational training programme on green economy

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